CLIMATE change is no longer a looming threat – it is an active crisis reshaping our world and how we live in it. For Malaysia, the impacts are visible: intensifying storms and frequent flooding are already disrupting livelihoods.
As part of South-East Asia, a region especially vulnerable to climate change, Malaysia must act decisively to mitigate these risks while safeguarding economic growth.
The Malaysian government’s commitment to achieving net-zero emissions by 2050 is a positive step forward. However, reaching this goal, limiting global warming, and addressing the most severe climate risks will require a range of effective solutions.
Among the solutions, carbon capture, utilisation, and storage (CCUS) is a vital tool for climate mitigation and supporting Malaysia’s economic resilience in a low-carbon future.
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What is CCUS?CCUS refers to a set of technologies that capture carbon dioxide (CO2) emissions from industrial processes or directly from the air, and permanently store them deep underground, preventing their release into the atmosphere. CCUS is particularly critical to decarbonise hard-to-abate sectors like cement, steel, fertilisers, and natural gas and will be vital to reducing historical CO2 build-up in the atmosphere.
The captured CO2 can be stored safely underground in geological formations or used to create products such as building materials or synthetic fuels. When CO2 is used to create other products, the application is called carbon capture, utilisation and storage. This approach follows the principles of the circular carbon economy, enabling re-use as well as storage.
Experts – including the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), among many others – have consistently highlighted that CCUS is essential for meeting global climate goals. While CCUS is not a standalone solution, it complements renewable energy, energy efficiency, and reforestation efforts, forming a comprehensive climate action toolkit. The international carbon capture and storage industry is gaining momentum, with over 50 operational facilities worldwide and hundreds more under development.
Malaysia’s progress on CCUS
Malaysia is emerging as a regional leader in CCUS, leveraging its natural and industrial advantage. A key opportunity lies in establishing CCUS hubs – geological storage sites capable of receiving CO2 from domestic industries and other countries in the region for a fee. These hubs not only facilitate decarbonisation but also create new revenue streams and strengthen regional cooperation.
The Malaysian government is taking concrete steps to advance CCUS. A dedicated CCUS legislative framework is expected by the end of the year, providing the regulatory clarity needed to attract investment and deploy projects.
In 2023, the government released the National Energy Transition Roadmap (NETR), which includes CCUS among its ten flagship initiatives, with plans to establish three hubs. Additionally, the New Industrial Master Plan 2030 (NIMP 2030) recognises CCUS as essential for decarbonising Malaysia’s heavy industries while fostering a new, competitive sector.
These initiatives send a strong signal to the private sector, offering clarity and confidence for CCUS infrastructure and technology investments.
The energy and industrial decarbonisation plans underscore the government’s commitment to following a model in which environmental sustainability, economic growth, and social responsibility are not competitive but mutually reinforcing.
Economic and social benefits of CCUS
Beyond its environmental advantages, CCUS offers substantial economic opportunities. Developing CCUS infrastructure can create thousands of skilled jobs, including engineers, geologists, and construction workers. This is already underway in the United States and Europe. Malaysia can replicate this success. With plans for three CCUS hubs under the NETR, the country has the potential to create new jobs and upskill existing roles for the green economy.
CCUS enables high-emission industries such as cement, steel, and fertilisers to continue operating sustainably, safeguarding jobs that might otherwise be at risk in the process of decarbonisation. Malaysia’s manufacturing and energy sectors stand to benefit from CCUS as it allows these industries to decarbonise while maintaining their competitiveness in the global market.
It can ensure that industrial workers, especially those in fossil fuel-dependent regions, are not left behind during the transition to net zero. This aligns with the NIMP 2030, which emphasises decarbonising hard-to-abate sectors.
As Malaysia navigates the energy transition, maintaining energy security while ensuring sustainable economic growth remains a critical challenge. For a developing nation like Malaysia, this means striking a balance between leveraging its rich natural resources and meeting climate commitments. The adoption of CCUS allows the country to continue benefiting from economic growth these resources while addressing emissions.
Global collaboration is key
The global experience with CCUS has demonstrated that success hinges on collaboration and extends beyond national borders.
Collaboration across governments, industries, and academia will be crucial to aligning policies, streamlining processes, and building necessary infrastructure. Malaysia and trading partners across Asia can benefit from knowledge-sharing, investment, and technology transfer to accelerate their CCUS journey.
The time to act is nowMalaysia stands at a crossroads in its climate and economic journey. The country has the natural resources, industrial base, and regional positioning to become a leader in CCUS.
By scaling up its efforts and fostering collaboration, Malaysia can achieve its climate goals while unlocking new economic opportunities.
As global momentum for CCUS grows, Malaysia has the opportunity to carve out a leadership role in this transformative space, building on its early successes and leveraging international partnerships to scale up deployment.
The time to act is now, and Malaysia has every reason to rise to the occasion. By embracing CCUS, the nation can ensure a sustainable, prosperous future for generations to come. Aishah Hatta is a senior storage lead at the Global CCS Institute based in Kuala Lumpur. With extensive experience in the energy sector, she specialises in geological storage
development plans for carbon capture and storage. The views expressed here are the writer’s own.
